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Guide · October 2026
What’s the best way to finance expanding a dental practice?
Match the product to the size of the project and how soon you need the money. For a multi-operatory buildout or a second office, with 24+ months of history and clean credit, a partner term loan ($50,000 to $5,000,000 over 1 to 5 years) or SBA 7(a) (up to 10 years, 25 with real estate) usually costs least. When the timeline is days, or credit is the obstacle, MedStream Capital working capital funds $25,000 to $2,000,000 in-house, 24 hours after you sign.
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Three products, and who funds each
MedStream Capital reads every file in-house first and tells you which product you are getting, and who funds it, before you sign anything.
Working capital — underwritten and funded by MedStream Capital. $25,000 to $2,000,000 over 3 to 24 months, repaid daily or weekly. No FICO minimum, four months of bank statements, no tax returns. It is the fastest option and the most expensive one, which makes it right for a single added operatory, pre-opening payroll, or a gap while bank paper closes.
Partner term loan — underwritten and funded by a partner bank. $50,000 to $5,000,000 over 1 to 5 years with monthly payments. Requires 24+ months in business, a 600+ personal FICO, $25,000 a month in revenue, two years of business tax returns, six months of statements and a debt schedule. Funds in 2 to 4 weeks. A second location, where the ramp runs 9 to 18 months, fits a 3-to-5-year monthly payment.
SBA 7(a) — underwritten and funded by a partner bank. $50,000 to $5,000,000, up to 10 years or 25 with real estate. Requires a 680+ personal FICO (700+ for better pricing), a 1.25× debt-service coverage ratio on a completed fiscal year, three years of business and personal returns, and a 10% equity injection on an acquisition. Closes in 60 to 120 days. The lowest cost of capital for a full buildout or an acquisition, if you can wait.
What you’ll need
- Working capital: four months of business bank statements
- Term loan: two years of business tax returns, six months of statements and a debt schedule
- SBA 7(a): three years of business and personal returns and a completed fiscal year
- The project budget: buildout, opening payroll and any buy-in or purchase price
- An active state professional or facility license for the practice or its supervising provider
- A list of every loan or advance already open
We tell you which product fits before you gather the heavier documents.
By project
What dental expansion costs, and what usually funds it.
| Project | Typical amount | Usually the best fit | Why |
|---|---|---|---|
| Adding one operatory or exam room | $25,000 – $100,000 | Working capital | Small enough to fund off statements in 24 hours |
| 3–4 operatory buildout (900–2,000 sq ft) | $350,000 – $750,000 | Partner term loan or SBA 7(a) | Monthly payments over years match the ramp |
| 5–7 operatory buildout (1,500–3,500 sq ft) | $700,000 – $1,500,000 | SBA 7(a) | Longest term and lowest cost, if you have 60 to 120 days |
| Second location or satellite office | $250,000 – $900,000 | Partner term loan; working capital for soft costs and pre-opening payroll | A 9-to-18-month ramp suits a 3-to-5-year payment |
| Partner or associate buy-in | $100,000 – $500,000 | Partner term loan | Below the practical floor where SBA’s timeline pays off |
| Acquiring another practice | $400,000 – $3,200,000 | SBA 7(a), with an in-house bridge of $40,000 – $150,000 if needed | SBA terms; the bridge covers a seller date sooner than the bank’s |
Size the project before you pick the lender
The buildout is usually bigger than owners expect. Warm-shell tenant improvement runs $150 to $250 per square foot, cold dark shell $250 to $375, and you should plan 300 to 500 gross square feet per operatory. Dental plumbing alone runs 15% to 25% of tenant-improvement cost. The full tables are in our buildout cost guide.
Underwriters also look at production mix. Hygiene should run 25% to 33% of collections; below about 20% draws scrutiny, and a Medicaid share above 40% raises questions on an SBA file.
The common sequence: bridge, then long-term money
Expansion financing often comes in two layers. The long-term layer is the partner term loan or SBA note. The short layer is in-house working capital that covers what cannot wait — earnest money, the 10% equity injection, the first payroll run in the new space — and is structured so the SBA note takes it out at close. That bridge typically runs $40,000 to $150,000. Disclose it to the SBA lender up front: some prohibit a borrowed equity injection, and we coordinate with them directly.
One published example: a dental practice 14 years in business, depositing $95,000 a month, took a $120,000 advance over 12 months to fund an operatory expansion.
What we do not do
MedStream Capital does not offer equipment financing or a separate equipment lease. Expansion projects run through working capital, a partner term loan or SBA 7(a). If your file clears a partner bank, we will tell you the bank paper beats an advance on cost — before you sign, not after.
Related: partner term loans, SBA 7(a), working capital, dental practice funding, or how much a practice can borrow.
FAQ
Questions that usually follow.
Is an SBA loan or a term loan better for a dental buildout?
SBA 7(a) has the longest term — up to 10 years, 25 with real estate — and the lowest cost, but needs a 680+ FICO, a 1.25× debt-service coverage ratio, three years of returns and 60 to 120 days. A partner term loan runs 1 to 5 years, needs 24+ months in business, a 600+ FICO and two years of returns, and funds in 2 to 4 weeks. Both are underwritten and funded by partner banks, not MedStream Capital.
Can I finance a dental expansion with working capital?
Yes, for the right piece of it. MedStream Capital working capital runs $25,000 to $2,000,000 over 3 to 24 months with no FICO minimum and funds 24 hours after signing. It fits a single added operatory, pre-opening payroll, or a bridge to an SBA close. For a full buildout, longer bank paper usually costs less, and we will say so.
How long does dental expansion financing take?
MedStream Capital working capital: a decision the same business day on complete files received before 2:00 p.m. ET and funding 24 hours after a signed contract. Partner term loans: 2 to 4 weeks. SBA 7(a): 60 to 75 days with a specialist lender and 90 to 120 days with a generalist bank.
Do you offer dental equipment financing?
No. MedStream Capital does not offer equipment financing or a separate equipment lease. Expansion projects are funded through in-house working capital, or through a partner term loan or SBA 7(a) arranged with partner banks.
What credit score do I need to expand my dental practice?
None for MedStream Capital working capital or a line of credit. Partner term loans need a 600+ personal FICO and SBA 7(a) needs 680+, with 700+ for better pricing. Those thresholds are the partner bank’s, not ours.
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